Question 1

Endorsements by sports or movie celebrities can help create a favorable brand association.

Accepted Answer

A) True 
 B)False

Question 2

Variable costs are costs that change with the level of production.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would a firm most likely use to differentiate its product?

Accepted Answer

A)  financial differences
B)  increased production
C)  elaborate packaging
D)  manual warehousingE) C) and D)
F) B) and D)

Question 4

Once an organization surveys the consumer's wants and needs,has designed a group of products to meet those needs,and begun to market them in stores,the organization is assured of success.

Accepted Answer

A) True 
 B)False

Question 5

Small firms often rely on non-price competition when competing against larger firms.

Accepted Answer

A) True 
 B)False

Question 6

The uniqueness of convenience goods and services stimulate consumers to make an extra effort to purchase them.

Accepted Answer

A) True 
 B)False

Question 7

The term product line describes the combination of product mixes offered by a manufacturer.

Accepted Answer

A) True 
 B)False

Question 8

A knockoff brand is a brand name that has lost its exclusive legal protection.

Accepted Answer

A) True 
 B)False

Question 9

A single product line may contain several competing brands.

Accepted Answer

A) True 
 B)False

Question 10

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy:

Accepted Answer

A)  penetration
B)  bundling
C)  skimming
D)  cost-basedE) B) and D)
F) A) and D)

Question 11

Which of the following is consistent with the growth stage of the product life cycle?

Accepted Answer

A)  a peak in the sales curve
B)  high profit levels
C)  a stable number of competitors
D)  declining profitsE) A) and D)
F) A) and B)

Question 12

Entice-mint Breath Mints is a new brand of breath fresheners.The company realizes that product location is very important since consumers desire to buy this type product with a minimum of effort.Entice-mint mints represent a:

Accepted Answer

A)  shopping good.
B)  specialty good.
C)  convenience good.
D)  industrial good.E) B) and D)
F) A) and D)

Question 13

When reviewing the product life cycle model,it is important to remember that:

Accepted Answer

A)  although all products go through each stage of the life cycle,the time frame can vary considerably from one product to another.
B)  it is a theoretical model that may not be followed by all products.
C)  the maturity stage accounts for the fastest growth in sales.
D)  companies earn their largest profits in the introduction stage.E) B) and D)
F) A) and B)

Question 14

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

Accepted Answer

A) True 
 B)False

Question 15

As a brand manager,Ellen has proposed an aggressive advertising campaign that exaggerates the benefits of their newest product.While Ellen is convinced that this strategy will encourage consumers to try the product,her assistant strongly opposes the ide A.Which of the following presents the best explanation for the assistant's opposition to Ellen's proposal?

Accepted Answer

A)  If a firm produces a quality product,the best advertising is word-of-mouth to generate excitement for a new product.
B)  The best way to promote new consumer products is with personal selling.
C)  Exaggerating the benefits of a product may backfire and injure the product's potential for success.
D)  Effective advertising for new consumer products should be subtle and low key.Ellen's proposal is more appropriate for the B2B market.E) C) and D)
F) B) and C)

Question 16

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

Accepted Answer

A) True 
 B)False

Question 17

While packaging innovations benefit the consumer,they have vastly increased the workload of retailers.

Accepted Answer

A) True 
 B)False

Question 18

The purpose of __________ is to create real or perceived product differences.

Accepted Answer

A)  niche marketing
B)  product differentiation
C)  product mixing
D)  target marketingE) B) and D)
F) C) and D)

Question 19

Miller Light Beer,Maxwell House Coffee,Jell-O brand gelatin,Kraft Mayonnaise,and Marlboro Cigarettes,were all at one time products of the Philip Morris Company.These products represented a part of the product line Philip Morris offered.

Accepted Answer

A) True 
 B)False

Question 20

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Accepted Answer

A)  everyday low pricing EDLP) 
B)  cost-based
C)  target-based
D)  skimmingE) B) and D)
F) A) and B)

Exam 14: Developing and Pricing Goods and Services

A knockoff brand is a brand name that has lost its exclusive legal protection.

Correct Answer
verified

While packaging innovations benefit the consumer,they have vastly increased the workload of retailers.

Correct Answer
verified

Entice-mint Breath Mints is a new brand of breath fresheners.The company realizes that product location is very important since consumers desire to buy this type product with a minimum of effort.Entice-mint mints represent a:

Correct Answer
verified

When reviewing the product life cycle model,it is important to remember that:

Correct Answer
verified

Correct Answer
verified

The term product line describes the combination of product mixes offered by a manufacturer.

Correct Answer
verified

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy:

Correct Answer
verified

Endorsements by sports or movie celebrities can help create a favorable brand association.

Correct Answer
verified

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

Correct Answer
verified

Which of the following is consistent with the growth stage of the product life cycle?

Correct Answer
verified

A single product line may contain several competing brands.

Correct Answer
verified

The purpose of __________ is to create real or perceived product differences.

Correct Answer
verified

Which of the following would a firm most likely use to differentiate its product?

Correct Answer
verified

Small firms often rely on non-price competition when competing against larger firms.

Correct Answer
verified

Once an organization surveys the consumer's wants and needs,has designed a group of products to meet those needs,and begun to market them in stores,the organization is assured of success.

Correct Answer
verified

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

Correct Answer
verified

Miller Light Beer,Maxwell House Coffee,Jell-O brand gelatin,Kraft Mayonnaise,and Marlboro Cigarettes,were all at one time products of the Philip Morris Company.These products represented a part of the product line Philip Morris offered.

Correct Answer
verified

The uniqueness of convenience goods and services stimulate consumers to make an extra effort to purchase them.

Correct Answer
verified

Variable costs are costs that change with the level of production.

Correct Answer
verified

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

A knockoff brand is a brand name that has lost its exclusive legal protection.

Correct AnswerverifiedShow Answer

While packaging innovations benefit the consumer,they have vastly increased the workload of retailers.

Correct AnswerverifiedShow Answer

Entice-mint Breath Mints is a new brand of breath fresheners.The company realizes that product location is very important since consumers desire to buy this type product with a minimum of effort.Entice-mint mints represent a:

Correct AnswerverifiedShow Answer

When reviewing the product life cycle model,it is important to remember that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The term product line describes the combination of product mixes offered by a manufacturer.

Correct AnswerverifiedShow Answer

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy:

Correct AnswerverifiedShow Answer

Endorsements by sports or movie celebrities can help create a favorable brand association.

Correct AnswerverifiedShow Answer

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

Correct AnswerverifiedShow Answer

Which of the following is consistent with the growth stage of the product life cycle?

Correct AnswerverifiedShow Answer

A single product line may contain several competing brands.

Correct AnswerverifiedShow Answer

The purpose of __________ is to create real or perceived product differences.

Correct AnswerverifiedShow Answer

Which of the following would a firm most likely use to differentiate its product?

Correct AnswerverifiedShow Answer

Small firms often rely on non-price competition when competing against larger firms.

Correct AnswerverifiedShow Answer

Once an organization surveys the consumer's wants and needs,has designed a group of products to meet those needs,and begun to market them in stores,the organization is assured of success.

Correct AnswerverifiedShow Answer

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

Correct AnswerverifiedShow Answer

Miller Light Beer,Maxwell House Coffee,Jell-O brand gelatin,Kraft Mayonnaise,and Marlboro Cigarettes,were all at one time products of the Philip Morris Company.These products represented a part of the product line Philip Morris offered.

Correct AnswerverifiedShow Answer

The uniqueness of convenience goods and services stimulate consumers to make an extra effort to purchase them.

Correct AnswerverifiedShow Answer

Variable costs are costs that change with the level of production.

Correct AnswerverifiedShow Answer

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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